In a market economy, private parties are more willing to do transactions when they know that the government is able to

Question

Quizplus · Accepted Answer

Private parties are more willing to engage in transactions when they feel secure that their contracts will be honored and that there is no risk of coercion or fraud. The government can provide this security by enforcing contracts and outlawing private coercion. Options A, C, and D are all examples of government action that would undermine this sense of security and decrease willingness to engage in transactions.

In a Market Economy, Private Parties Are More Willing to Do